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Priceline Makes Surprise Swoop for Kayak

Written by: James Rogers11/08/12 - 4:34 PM EST

Tickers in this article:
PCLN KYAK

NEW YORK (TheStreet) - Priceline.com(PCLN) Thursday announced a surprise deal to acquire newly-public travel Web site Kayak(KYAK) for $40 a share in cash and stock.

The deal values Kayak at roughly $1.8 billion.

"Kayak has built a strong brand in online travel research and their track record of profitable growth is demonstrative of their popularity with consumers and value to advertisers," said Priceline CEO Jeffery Boyd, in a statement released after market close. "We believe we can be helpful with Kayak's plans to build a global online travel brand."

Norwalk, Conn.-based Kayak went public in July after earning a reputation as a valuable resource for travelers.

"We're excited to join the world's premier online travel company," explained Steve Hafner, the Kayak CEO, in the statement. "The Priceline Group's global reach and expertise will accelerate our growth and help us further develop as a company."

Both companies' boards have approved the transaction, which is subject to approval by Kayak's shareholders and regulators.